UK car production falls almost 10%

Industry figures are showing a steep drop in the number of vehicles being manufactured in the UK for the domestic and export markets. The sharp drop is being blamed on factory preparations for the production of new models.

The car sector has been one of the most vocal in its opinions and demands on Brexit the referendum last year.

136,119 new cars were built and in percentage terms, the largest drop came from those produced for the domestic market as prices and taxes rise on many new vehicles.

Many companies in the UK who produce and manufacture are starting to feel the benefits of the weaker pound since the Brexit vote, as it makes their goods more competitive abroad.

This situation at the moment is quite good for the automotive industry in export terms as almost 80% of all cars made in Britain are exported, with more than half going to Europe.

The motor industry in Britain blamed the timing of Easter for a deeper plunge in production back in April.

Although there are some export benefits for UK car manufacturers exporting to the European market, they are keeping quiet on this and acting somewhat coy on the benefit from sterling, pointing out that its supply chain, which is mostly based in the EU, has raised its costs as the weaker pound makes imports more expensive.